Scarce Resources
Thoughts on economics and education by Edward Millner
Friday, March 1, 2013
Unions and Minimum Wage
This
article
in the WSJ identifies two reasons that unions support increases in the minimum wage.
The wage paid in many union contracts is pegged to the minimum wage. As the minimum wage rises, so dos the union wage.
Paying less skilled workers more increases the demand for highly skilled unionized labor.
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